National Internet Finance Association of China Issues Strict Warnings to local Cryptocurrency Exchange Bodies

 The Bitcoin market has been witnessing a lot of volatility owing to speculations of China planning to shut down local Bitcoin exchanges in the country. As per the latest reports coming from China, the top authorities of National Internet Finance Association (NIFA) has issued a serious warning for illegal cryptocurrency trading activities.

NIFA has raised concerns over the use of this “virtual currency” as a primary tool to carry out all the nefarious and criminal activities like money laundering, drug trafficking, illegal fundraising, and others. In this high speculation-driven cryptocurrency market, investors are subjected to high volatility and high-security risks. NIFA in its statement has highlighted the fact that its ultimate concern is protecting the investor’s interest.

In the previous week, the Chinese Regulators and Authorities banned the funding model of ICOs. Ever since then, many of the local bodies, that were focussing on ICOs, have either brought their operation to halt or shut down completely.

This move from the authorities has created a huge negative sentiment in the global-cryptocurency market owing to which the Bitcoin prices have tumbled causing enough panic within the investors. Not only Bitcoin prices dropped, but also the whole cryptocurrency market capitalization fell by nearly $20 Billion Dollars as China announced ban on ICO.

 So Does This Mean the End of Bitcoin in China?

 As per the reports from the local media in China, the statement issued by NIFA nowhere says that Bitcoin is ‘illegal”. However, NIFA has stated that all the existing exchanges and trading platforms are not legally established and so they might have to undergo through a strict regulatory supervision and produce a legal license if at all they are willing to operate in the future.

NIFA’s statement reads:

“All kinds of so-called “currency” trading platform in China is not legally established basis. Member units should fulfill their commitment to industry self-regulatory conventions, strictly abide by national laws and regulations, do not participate in any of the so-called “virtual currency” related to the concentration of transactions or services for such transactions, take the initiative to resist any illegal Illegal financial activities.”

 After the recent statement from NIFA, Co-Founder of BITMAIN (a well-known and renowned Bitcoin company), Jihan Wu said:

“China has not banned bitcoin.None of the bitcoin exchanges in China have licenses that are required for order book exchange. Such law is older than bitcoin. Because some establish in China that Bitcoin exchanges need to stop operations right now does not mean that they cannot open again once with a license.”

 This possibility of Bitcoin again being accepted for trading in China, has certainly created a bit of momentary optimism within investors.

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